Insurance

Company Overview of Appalachian Underwriters, Inc.

Company Overview

Appalachian Underwriters, Inc., doing business as Appalachian Insurance Services, provides wholesale insurance brokerage services. The company provides independent agents with access to various markets for workers’ compensation, commercial specialty, and personal lines of insurance. It offers various programs in the areas of construction, transportation, garage, retail/service, and professional liability. Appalachian Underwriters, Inc. was founded in 1995 and is based in Oak Ridge, Tennessee. The company has locations in Oak Ridge and Murfreesboro, Tennessee; San Diego, California; Sanford and Sarasota, Florida; Kennesaw, Georgia; Columbia, South Carolina; and St. Peters, Missouri.

Appalachian Underwriters, Inc. Key Developments

A U.S. District Judge Orders Appalachian Underwriters Inc. and Insurance Services Group Inc to Pay More Than $41 Million to Greenlight Reinsurance

Dec 1 14

A U.S. District judge in New York granted the request for a summary judgment against Appalachian Underwriters Inc. and its affiliate, Insurance Services Group Inc. The judgment was awarded to Greenlight Reinsurance Ltd. The award totals $41,442,369, plus costs and interest. Both sides have indicated they are in negotiations over the judge's order. Meanwhile, a hearing has been scheduled for Dec. 19, 2014 in Anderson County Chancery Court to domesticate the judgment, which would give See Insurance, 6A Greenlight jurisdiction to take action toward collecting it. New York District Judge J. Paul Oetken in his opinion discusses the types of agreements between AUI, its affiliates and Greenlight that are the subject of his order. AUI's debt woes stem from a slew of higher-than-expected losses on its insurance policies, according to the judge's 21-page opinion and order. The debts involve three types of agreements between AUI and Greenlight: reinsurance agreements, retrocession agreements and guarantees. In the three reinsurance agreements in question, AUI shared its policy risks with Greenlight in exchange for a portion of the premiums from the underlying policies, the judge wrote. In three agreement years, AUI's loss ratios were above a level that would entitle the firm to only a minimum commission, but the company kept a higher amount, according to the opinion. The judge said AUI owes Greenlight $16,986,156. In the two retrocession agreements at issue, Appalachian Reinsurance, a subsidiary of AUI, was supposed to pay Greenlight once the net loss ratio on Greenlight's books is greater than 60%. The judge ruled Appalachian Reinsurance owes $24,456,213.

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